There has been much talk about the importance of Blockchain technology as an enabler of the new web, Web 3.0. Certainly, Blockchain makes it possible for network interactions to be truly peer-to-peer, eliminates the need for an intermediary, and adds important elements of security and origin guarantee. However, when we analyze the impact of the concepts developed on Blockchain, there is none more disruptive than the Smart Contract.
Smart Contracts are pieces of software that execute defined sequences of actions as part of the exchanges between network actors. The simplest case of a Smart Contract is the exchange of money (crypto) for digital assets. On platforms like Ethereum, a buyer can access a marketplace like Opensea and purchase an NFT; when they do so, a Smart Contract is automatically executed, transferring the money from the buyer’s wallet to the seller’s (and to other wallets, if applicable), paying commissions, and transferring the NFT to the buyer’s wallet; all of this without any manual intervention like those we are accustomed to on Web 2.0 platforms such as eBay.
However, as a great enabler, Smart Contracts have the capacity to implement much more complex interaction schemes that include, for example, message distribution between parties, integrations with APIs and Databases, recurring transactions, and basically any sequence that can be designed as an interaction between network components.
A buyer can, for example, acquire a digital asset, such as an NFT, and part of the benefits may be entry to an event or membership in a group. In this case, the Smart Contract can automatically make the necessary calls to the APIs to register the buyer, using their Wallet ID in any system that is integrated into the Blockchain. The possibilities are unlimited.
Marketplaces, such as OpenSea, Rarible, or Foundation, offer simple Smart Contracts that sellers can use transparently. These Smart Contracts include the basic functionalities for exchanging assets, money, and messaging. However, to go further and take advantage of the full potential, tailor-made Smart Contracts must be built, in the same way that eCommerce systems are developed on the Web 2.0.
Smart Contracts have a development environment based on a programming language, Solidity, and a set of rules and templates. The development of Smart Contracts is fundamental to harnessing the potential of the Blockchain. If you are interested in learning more about how to integrate your systems into the Blockchain or how to implement Smart Contracts for your business, write to us and we can discuss your idea.